Business Insurance Solutions
Buy-Sell Life Insurance
Objective: Buy-sell life insurance is a type of insurance that helps business owners plan for the financial impact of a partner’s death. It provides funds through life insurance for the surviving owners to buy out the deceased owner’s share, ensuring business continuity. It also helps with estate equalization, provides tax benefits, and protects business value
TYPES OF FUNDING MECHANISMS
Common types of funding mechanisms for a buy-sell agreement include life insurance, installment notes, cash, or borrowing funds. Each type has its own advantages and disadvantages. What type is best for you? Depends on your unique situation and what you are trying to accomplish. Several additional factors such as ownership structure, valuation methodology, triggering events, tax implications need to be considered. It is advisable to work with legal counsel experienced in buy-sell agreements to ensure that the agreement is legally sound and tailored to the specific needs of the business.
We can conduct a comprehensive assessment of the business structure, ownership interests, and potential risk to determine if a Buy-Sell Agreement is necessary and which funding mechanism aligns best with the terms of the Buy-Sell Agreement.
Key Employee Life Insurance
Objective: Provides financial protection to a business in the event of death or disability of a key employee or owner. It aims to mitigate the financial impact of losing a key individual by providing a benefit that can cover costs such as recruiting and training a replacement, maintaining business operations, paying off debts, or compensating for lost revenue.
Common Types of Key Person Coverages
Key Person Life Insurance
Key person life insurance can help provide financial stability and continuity for he business during a challenging time, allowing the business to continue operating smoothly without significant disruptions. It can also reassure lenders, investors, and other stakeholders that the business is prepared for unforeseen events.
Key Person Disability Insurance
Key person disability coverage provides a financial cushion by replacing lost income and helping cover expenses associated with hiring and training a replacement, paying off debts, or funding ongoing business operations during the key person’s absence. Implementing key person disability coverage is a proactive measure that can safeguard the organization’s financial health and operational resilience in the face of unforeseen challenges.
Key Person Disability: Provides disability insurance coverage in case the key person becomes disabled.
Let us assist you in evaluating the importance of a key person to your business and securing the appropriate insurance coverage to protect against potential financial losses.
